Elauwit Connection stock price rises despite the company's plan to restate earnings report

Investing.com – Elauwit Connection Inc (NASDAQ:ELWT) stock rose 3% on Friday after the company announced plans to restate its financial statements for the quarter ending September 30, 2025, due to revenue recognition errors.

The managed services provider based in Columbia, South Carolina, said the restatement was due to incorrect entries related to certain network design and installation contracts under the percentage-of-completion method. This error led to an overstatement of revenue, gross profit, operating income, and net loss by approximately $1.4 million for the nine months ending September 30, 2025.

The company disclosed that the error originated from work performed by a third-party national accounting firm hired immediately before and after its initial public offering. The mistake was discovered by Elauwit’s newly expanded internal accounting team while preparing the full-year audit for 2025. The error did not occur in periods before 2025 and did not involve any intentional misconduct.

On Tuesday, the board’s audit committee decided that the company will restate the unaudited condensed consolidated financial statements included in its quarterly report on Form 10-Q filed on December 10, 2025. The company plans to submit the amendments as soon as reasonably practicable.

Executive Chairman Dan McDonough stated that the restatement will not affect the company’s operations, growth strategy, or the trend of revenue and operational performance improvements from 2024 to 2025. The company continues to expand its business, providing broadband and full-property WiFi network services for multi-family residences, student apartments, and senior living communities.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.